Granite REIT announces C$300 million seven-year term loan

By Wendy Van Sickle

Columbus, Ohio, Dec. 12 – Granite Real Estate Investment Trust entered into a C$300 million committed seven-year senior unsecured term loan facility, according to a news release.

Through a cross currency interest rate swap, Granite has exchanged the principal and interest payments for euro-denominated payments at an all-in 2.2% fixed interest rate.

Granite said it plans to use the net proceeds for general corporate purposes, including to fund development and property acquisitions.

“We are pleased to have sourced flexible and competitive debt capital from a leading Canadian financial institution that will further enable the execution of our strategy,” Ilias Konstantopoulos, Granite’s chief financial officer, said in the release.

“Pro forma the term loan, Granite’s interest-bearing debt remains entirely unsecured, provides a natural and partial hedge to our European asset base and cash flows, has a weighted average cost of 2.42%, a weighted average term to maturity of five years and is entirely at a fixed rate of interest.”

Granite REIT is a Toronto-based real estate investment trust that owns and manages mostly industrial, warehouse and logistics properties in North America and Europe.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.